A stablecoin is a token pegged to a fiat currency (most often the US dollar) and is supposed to be backed by real reserves. The most popular one is Tether (USDT).
But in Tether’s official legal document dated January 27, 2025, it clearly states:
❗️No guarantees:
“No representation or warranty, express or implied, is made by Tether or any of its Associates...” (p. 2)
⚖️ All obligations are governed solely by the website’s Terms:
“In the event of any inconsistency between this RID and the Terms, the Terms shall prevail.” (p. 1)
🛑 Tether can suspend or deny token redemption:
“Tether may delay or suspend redemption under various circumstances...” (p. 17)
“Tether maintains the sole discretion to approve or reject requests...” (p. 15)
💼 The reserve composition can be changed at any time:
“The composition of Reserves is subject to change at Tether’s sole discretion.” (p. 18)
This means Tether provides no guarantees. All obligations are limited to the terms published on their website. Tether can deny redemption, suspend operations, or alter its reserves at its sole discretion.
🔍 Only verified users (with KYC) can redeem tokens for actual dollars — and only starting from $100,000, plus fees. Regular users holding USDT on an exchange or in a wallet have no direct legal claim against Tether.
Tether does hold reserves, but:
— their composition can change,
— the reports are not full financial statements,
— Tether’s obligations are limited by its internal rules.
— their composition can change,
— the reports are not full financial statements,
— Tether’s obligations are limited by its internal rules.
📉 So, despite the claimed price stability, there are no legal guarantees or enforceable obligations to end users. Tether manages its reserves on its own terms and can change the rules at any time.
Conclusion: Stablecoins are not synonymous with safety. Their reliability depends not only on the price peg but also on trust in the issuer, transparency, and willingness to honor commitments.
For consultations on blockchain, taxes, or mining — email us at info@cryptadvisor.ru. We’ll help you navigate any case.
For consultations on blockchain, taxes, or mining — email us at info@cryptadvisor.ru. We’ll help you navigate any case.